The Odisha government just rolled out a big new Excise Policy for 2026-2029—a move away from those usual yearly tweaks to a steadier three-year plan. Excise Minister Prithviraj Harichandan announced it in the State Assembly. The policy kicks in on April 1, 2026, and runs until March 31, 2029. The idea is to create more stable revenue, tighten up regulation, and add some real social welfare initiatives, especially around de-addiction.
One of the headline changes is a new 0.5% “De-Addiction Cess” slapped onto excise duty. For the first time, the government is officially treating alcohol as a harmful substance and setting aside funds for rehab. All money collected from this cess will go straight toward building up de-addiction centers across Odisha.
There’s another major shift in this excise policy: the government is dropping the Minimum Guaranteed Quantity (MGQ) sales system in favor of Minimum Guaranteed Excise Revenue (MGER), basically to keep vendors from pushing sales volumes just to hit targets.
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Traders are facing higher costs. Application fees for excise licenses are jumping by 10%, and annual license fees will climb by 10% to 20%. On top of that, home delivery of liquor is off the table, and there’s a freeze on new “off-shops” and country liquor outlets. In rural areas, no new “on-shop” licenses will be issued, except for three-star hotels and clubs in industrial zones.
The policy lays out tough location rules too. Liquor shops are completely banned on both sides of Grand Road (Bada Danda) in Puri near the Sri Jagannath Temple. To keep things transparent and crack down on illicit sales, the government’s putting in a “Track and Trace” system and making 24-hour CCTV surveillance mandatory at all manufacturing units and retail spots. The Excise Commissioner’s office will monitor all these feeds.
There’s more: every country liquor unit now has to have FSSAI certification. The government’s also planning to turn its enforcement wing into an armed force to better fight narcotics and illegal brewing.